WASHINGTON, August 23, 2013 – API analysis finds the Bureau of Land Management’s (BLM) proposed rule on hydraulic fracturing would impose an added regulatory layer that would be costly and provide little or no environmental or safety benefit, the association said in comments filed with the agency today.

"A new layer of duplicative regulations would raise costs and create needless delays for domestic energy production, threatening jobs and revenues that are driving U.S. growth," said API Director of Upstream and Industry Operations Erik Milito. "The BLM has taken steps to improve its proposal from last year, and it wisely follows the lead of states that have already adopted FracFocus to improve transparency, but there is still no clear benefit to imposing additional federal rules on top of state environmental stewardship. 

“The BLM itself has praised the sophisticated and effective oversight of state regulators, and the safety record of oil and natural gas producing states has been exemplary. This industry is leading an economic renaissance in America and has created jobs at a rate forty times faster than the broader economy, according to federal estimates. There is no sound legal or environmental reason to jeopardize that growth with regulatory confusion and uncertainty."

The full text of API’s comments to the BLM can be found here.  According to the organization, the proposed rule would:

• Address issues that present no demonstrated risks based on actual data or agency experience;
• Significantly conflict with existing federal and state regulations;
• Exacerbate well-documented delays in permitting and production;
• Impose definitions and standards that ignore local hydrology and geology; and
• Establish vague and conflicting guidelines that would result in costs ranging from $30 million per year to $2.7 billion per year.

API is a national trade association that represents all segments of America’s technology-driven oil and natural gas industry. Its more than 500 members – including large integrated companies, exploration and production, refining, marketing, pipeline, and marine businesses, and service and supply firms – provide most of the nation’s energy. The industry also supports 9.8 million U.S. jobs and 8 percent of the U.S. economy, delivers $86 million a day in revenue to our government, and, since 2000, has invested over $2 trillion in U.S. capital projects to advance all forms of energy, including alternatives.